Whole life insurance


Also found in: Dictionary, Thesaurus, Acronyms, Wikipedia.

Whole life insurance

A contract with both insurance and investment components: (1) It pays off a stated amount upon the death of the insured, and (2) it accumulates a cash value that the policyholder can redeem or borrow against.

Whole Life Insurance

A life insurance policy with no expiration date. That is, a whole life insurance policy provides coverage for the entire life of the policyholder (provided he/she continues to make premium payments). When the policyholder dies, regardless of when that is, his/her beneficiaries receive the death benefit. Whole life insurance policies also include a cash surrender value, allowing the policyholder to recover part of the premium he/she has invested in the policy should he/she ever decide to cancel the policy.

whole life insurance

Whole life insurance.

A whole life insurance policy is a type of permanent insurance that provides a guaranteed death benefit and has fixed premiums.

This traditional life insurance is sometimes also known as straight life insurance or cash value insurance.

With a whole life policy, a portion of your premium pays for the insurance and the rest accumulates tax deferred in a cash value account. You may be able to borrow against the cash value, but any amount that you haven't repaid when you die reduces the death benefit.

If you end the policy, you get the cash surrender value back, which is the cash value minus fees and expenses. However, ending the policy means you no longer have life insurance and no death benefit will be paid at your death.

References in periodicals archive ?
To do this different types of life insurance policies are compared including single-and level-premium whole life insurance, as well as level-premium 10-, 20-, and 30-year term insurance.
Most clients who purchase single premium whole life insurance will have a specific beneficiary in mind when purchasing the product--many clients with special needs beneficiaries are attracted to these types of policies.
Gain an understanding of the UK whole life insurance market.
While whole life insurance was first introduced more than 250 years ago, the product is more relevant and powerful today than ever before.
By recommending that small business owners purchase a whole life insurance policy in a qualified defined-benefit plan, CPAs are able to foresee and ultimately meet their changing needs.
Products like whole life insurance, something that's been available for decades, may seem out-of-date to many.
Whole life insurance is NOT limited to a specific period and premiums are usually MORE expensive because the insurance company WILL eventually pay the sum insured.
For the more established and successful business operation, whole life insurance may be the way to go.
Ozark National's marketing program is focused on the sale of non-participating whole life insurance along with a mutual fund investment to accomplish policyholders' insurance and investment objectives.
The US-based personal lines insurer has said that it has launched a new whole life insurance plan that guarantees death benefits, cash values and premiums.
5: How does the adjustments provision of AL differ from the change provision often found in ordinary whole life insurance policies?
ORIX Life has developed insurance products with the mission of meeting our customer needs through products such as "New CURE" medical insurance, "New CURE Lady" medical insurance, "RISE" whole life insurance, and "Keep" income protection insurance, as well as with our relaxed underwriting condition insurance options "New CURE Support" medical insurance, and "New RISE Support" whole life insurance, based on our product concept of being "simple and easily understood" and "reasonable insurance at an affordable price.